China's exports and imports fall below expectation in July due to weakening demand

China's exports and imports fell more than expected in July suggesting a weak global demand of the world's second-largest economy.

The General Administration of Customs said on Monday that the exports contracted 4.4 per cent to $184.7 billion but it has slightly improved over the 4.8 per cent contraction in June. The administration added that the pressure on exports is likely to relax at the beginning of the fourth quarter.

Imports fell 12.5 per cent from a year earlier resulting in the biggest decline since February. This shows that the domestic demand is also stagnant in spite of the measures taken to stimulate the growth.

The analysts polled by Reuters had forecasted trade to remain weak and expected a decline of 3.0 per cent in July exports and 7.0 per cent decline in imports.

The trade surplus was $52.31 billion in July compared to a $47.6 billion forecast and June's $48.11 billion.

Despite still-strong shipments of steel and oil products, China's exports were disappointing. Major trading partners of China accused the nation of dumping its excess industrial capacity in global markets.